Building a Global Supply Chain Can Expand Your Market and Improve Your Risk Management

Global Supply Chain – As a retailer or wholesaler of goods, your success lies in providing the products you offer to customers in a timely manner, and maintaining strong connections with this base of buyers. Whether your business is clothing, antiques, food, or household items, you know it’s important to keep inventory ready, and be prepared for any issues involving transportation and manufacturing. Growing your supply chain through networking with globally-based traders rather than keeping business with one or two vendors can help reduce the risk management in your work.

Risk Management and Your Company

Risk management describes the effect of uncertainty on work objectives, positive or negative. Every line of work – manual labor, clerical, financial, etc. – comes with its unique risks. Where global trade is concerned. A retailer or wholesaler may encounter issues with shipping and customs, or damage to goods in transit. Recent events like the eruption of an Icelandic volcano and BP’s oil spill in the Gulf of Mexico have assuredly affected global trade for certain parts of the world. In business, one cannot expect when natural or man-made disasters may occur and effect supply and demand. But it’s always important to anticipate the possibilities.

In risk management, you are responsible for assessing what events are capable of threatening your business. Suppliers and traders based in areas of political unrest, or with mediocre transit are certain to affect the timeliness of your deadlines with your customers. But if these vendors provide particular products you need you may find it difficult to drop them altogether. Expanding your supply chain to include similar manufacturers and distributors, however, widens the door and provides more solutions. If you are unable to get the goods you need directly from one source, you can create the option to buy from a similar company. Or work through another vendor who is able to make that direct connection.

Market Expansion – Grow Your Customer Base

Think about your current reach. Have you experienced a slowdown in sales with your localized brick and mortar store? Do you have an online shopping cart but wish to do more to reach a market beyond your city’s borders? Building a larger supply chain can help you accomplish that. And you don’t necessarily have to import more inventory to your warehouse.

Research suppliers that store goods for you, or else in warehouses at different points on the globe. Finding the right vendors able to drop-ship items to customers can increase your businesses. And in turn gain a higher level of brand recognition. Whether you expand your website presence to allow for overseas shipping to customers. Or grow a following through an eBay and Etsy store. The ability to drop-ship offers limitless potential to how you do business.

The greater your supply chain, the better you can optimize your company’s risk management and global reach. Bigger profits are had when your business grows. And as you research the opportunities you’ll see just how quickly they can improve.